Ford Motors Financing

[CA4Closure]

I am in the market for a new Ford Edge or Escape Titanium. I want to finance through Ford because they have a 0% financing program going on right now. The dealer seems uninterested in even promoting this financing. Anyone here have experience with Ford Motor Financing? What is the pros and cons of FMC financing?

[Anonymous]

Surprised that the dealer isn't interested ... I thought they shared in the rewards of placing financing with Ford Motor Credit. My experience with them is five loans and other than a Pre-owned Vehicle purchase I have obtained the 0.00% for 72 months every time. It gets better, I had a BK on the record for three of the purchases. Maybe you need to contact Ford Credit directly and see if you can Pre-Qual?!

[Watchmann]

Is the sales department telling you this, or the finance department, they are two separate entities at most dealers.  Usually you agree on a price with the sales person then they turn you over to the finance people which is where you discuss the terms of the deal.  I bought a Ford two years ago and financing never came up in the negotiations with the sales guy, it was only when I got with the finance man did I tell him I wanted the 0% for 72 months that was available from Frod Finance.  No problems.

Go back to the dealer and try again, stick to your guns with the loan you want.  I find no downside with Ford finance if the terms are good for you, I set up an automatic payment with them and have had no problems with it.

[Anonymous]

I'm on my second loan with FMC and l love them. I got 72 months at 1.99% because they weren't doing the 0% when I was in the market. But it wasn't too hard to qualify for the deal and they are very easy to work with once you are a customer. I'd go to a different dealership if your current one is giving you the run around.

[settleordelete]

I use Ford Credit for my last purchase. I was told after I applied online that the dealer sets the a.p.r. Did you apply online at Fordcredit.com? You can get the 0% if you qualify but it may also mean that you won't get all the big rebates.

[pipeguy]

My son in law just purchased a new F-150 in mid-June - went in and struck a deal then said I'm interested in the 0% financing through FMC and that's when it got interesting. He and my daughter have high credit scores (not exactly sure the number but at least 760+ across all CRA's) and make in excess of $200k a year. The dealer said the current rebate was only if you financed through FMC and their rate would be 8.99% if they wanted the rebate and special pricing for the 0% you needed to pay sticker price (this was a major FORD dealer in Virginia. SNL walked out. I suggested he use PenFed or Justice FCU as they are both members of and secure a 1.99% preapproval then go find a truck with a good rebate and discount.

He ended up buying a 2017 F-150 with a MSRP of slightly over $50k for $38,500 +T&T and presented his own in hand financing.  The point of this story is to pay attention to 0% financing and see if the "discount" vs the financing is the better deal especially since 2% +/- financing is available through most major credit unions right now - do the math before you think you got such a great price on financing when in fact you left a ton of money on the table.

GM was recently (not sure if its still going on) offering 20% off MSRP or 0% on select vehicles including PU Trucks - same deal, take the 20% and get your own 1.99% financing. 

[Anonymous]

I was just reading about that scam a few minutes ago and it seems when it is not a manufacturer incentive but a unauthorized dealer 0 percent financing they hike up the purchase price or say "it is only good at x price because they will prepay the interest from profit and only make it look like it was zero interest in the paperwork. We did just walk away with true zero interest and 4000 below dealers stickers after incentive so I was curious about these deals. Also the zero interest in our case was at more than one Toyota dealer. We only haggled at the one though.

[Anonymous]

Several points have come out in this thread. In my case I did as one poster stated and ran the numbers with all the rebates and ran the numbers with the 0%. Also, had options for external financing beyond Ford Credit. As has been mentioned the results can be different and that can be per line of vehicle series. At first look the rebates looked best and after getting the external rates I ended up with additional credits and the 0% worked. Without the extra credits that popped up for five days the rebates would have been my path with external financing. It definitely is a game and the buyer has to do the research. It seems the rebates supposed MSRP and so on pricing is a moving window that can change as fast as I changed clothes.

[bigpoppa09]

Here is the thing most people don't know anytime u take the special financing say .9 or 0% the dealer keeps all the rebates.  So run the numbers and see if the 0% or taking all the rebates and using outside financing works best for u.

[Anonymous]

---

@bigpoppa09 wrote:

Here is the thing most people don't know anytime u take the special financing say .9 or 0% the dealer keeps all the rebates.  So run the numbers and see if the 0% or taking all the rebates and using outside financing works best for u.

---

A blanket statement the dealer keeps all the rebates is not accurate. It changes with the various promotions that the manufacturer is running along with dealer incentives. In my case the big $4,500+ rebates for the model I was looking at went away but, I was able to capture a $1,000 Vehicle Model rebate and a $750 Military Rebate. The rebates changed over a five day period so it was a moving window. A buyer has to really pay attention and the dealers do keep some of the rebates depending on what is going on ... during auto industry build out (June - August) the manufacturer is ever trying to dump inventory and odd parts left over from the model year such as too many 1.6 liter engines that were not sold so they upped the rebates to move the vehicles with that engine type. In my past I worked for Ford Motor and they used to use three invoices to lure the customer in and sell cars below MSRP when in fact the dealer was getting a nice profit and still was above the real invoice price that the consumer never saw. Looking at outside financing versus rebates of the moment is certainly an important factor. The dealer started telling me that our local area average outside financing was 4.25% for most customers and with the rebates I would lose using that method (maybe it was true). What I knew was banks I deal with would write a loan for me at 1.9% to 2.9% for 72 months on a new vehicle (before I walked into the dealership) and i did not need to take many credit report hits in the bureau to get it (yes I paid attention as I don't trust any dealer or their business manager/finance officer).